Thursday 1/29

RAPOn the next slide

Today:Internet activity

Are you conservative or liberal?

Power point on ideologies (If time permits)

Internet activity

On my website Open up the activity titled “Are you a conservative or a

liberal?” Follow the directions and complete the activity.

You will be writing an essay after completing the activity and assessing the outcome.

Tuesday 2/3

RAP What did you think of the internet activity from

Thursday? Be specific.

Did the results come out as you expected? Explain.

Today: Review political ideologies Review Ch. 5 If time permits, work on Ch. 6 voting

WHAT DOES IT MEAN TO HAVE RADICAL, LIBERAL OR CONSERVATIVE VIEWS ON ECONOMIC DECISIONS MADE BY OUR GOVERNMENT?

Political Ideology

What is the role of the government in the economy?

Provide Public Goods and ServicesCorrect for Externalities (spill overs: i.e Pollution

emitted by a factory that spoils the surrounding environment and affects the health of

nearby residents is an example of a negative externality.)Maintain CompetitionEstablish a legal frameworkRedistribute IncomeReduce Inflation and Unemployment

Adam Smith’s view on the role of government.

Adam Smith was a philosopher in the late 1700’s who believed that the role of government was to build infrastructure, provide security (police) and provide a national defense. These are all services that no one person or business can provide adequately and they benefit the entire population.

lib·er·al·ism

–noun 2. a political or social philosophy advocating

the freedom of the individual, parliamentary systems of government, nonviolent modification of political, social, or economic institutions to assure unrestricted development in all spheres of human endeavor, and governmental guarantees of individual rights and civil liberties.

con·serv·a·tism

–noun 1. the disposition to preserve or restore what

is established and traditional and to limit change.

rad·i·cal

 –adjective. 2. thoroughgoing or extreme, esp. as regards

change from accepted or traditional forms: a radical change in the policy of a company.

3. favoring drastic political, economic, or social reforms: radical ideas; radical and anarchistic ideologues.

Liberal point of view

The government should provide subsidies and tax breaks to certain industries to protect American jobs.

Why?

Agriculture – subsidies will guarantee an abundant and safe food supply. Also protect an American way of life.

Manufacturing – tariffs can make imports more expensive so consumers will be more willing to purchase American products. Protects American manufacturing jobs and is supported by labor groups.

Conservative Point of View

The government should not protect certain industries because it may be more cost effective to produce something else instead. Subsidies may discourage inn0vation and the money should be spent where the market drives it.

Why?

Government should not provide subsidies to struggling industries, if the business cannot survive on its own, perhaps they should not be in business

Supply and demand will dictate what should be produced, if the government interferes there will be inefficiencies in the economy

Some jobs will disappear but innovation will lead to new jobs (and most likely better jobs)

How would you respond to these situations?

Your mom lost her job because her company decided to outsource her job to India. Most of the jobs in her industry are located outside the U.S. so she will be unemployed and may need new skills.

Your uncle works in a tire factory and makes a pretty high wage because the United States put a tariff on Chinese made tires. Without the tariff, you might be able to buy tires for your new car for $20 less but your uncle might have to take a pay cut or lose his job.

Liberal Point of view

Higher taxes help support much needed social services in communities such as schools, police and fire. Also social services (WIC, Food stamps, free and reduced lunch, aid to the elderly, adult education, job training…just to name a few)

Why?

All citizens are entitled to basic services during times of need (unemployed, disabled, etc.) The only way to provide these services is to pay taxes.

Every citizen, regardless of financial ability should receive the same quality education. An educated community is more likely to get and maintain jobs. Furthermore, educated people usually have higher paying jobs which will lead to a bigger tax base. It is a win -win situation.

We all need to take care of our citizens.

Conservative Point of View

Taxes should be as low as possible.

More bureaucracy leads to government waste

To lower taxes, the government should provide the minimum of services necessary to promote the rule of law.

Why?

When consumers and businesses have more money in their pockets, they can make their own choices in how the money should be spent. Who knows best how to spend your money, you or the government?

Government programs may not provide an incentive to get a job or improve your economic situation.

If people have more money, they can support the charities that they believe are the most important rather than have the government choose for them.

How would you respond to these situations?

Due to budget cuts, the lunch program at school was canceled and now some kids may not have a good meal during the day.

Your grandpa used to go to the senior center to play cards with his friends. The senior center closed so he has no place to go hang out during the day. He is very lonely since grandma died and he has little social interaction.

The free shot clinic was canceled. You cannot enter your child into school until he has received all his vaccinations.

Liberal Point of View

We have to protect our natural resources and the best way to do that is through government regulation and monitoring

Why?

Incentives to businesses engaged in “green” technology (this will make green technology more affordable)

Government agencies to enforce environmental control.

Tough laws against pollution

Conservative Point of View

Government regulations can be too restrictive for business growth. Rather than more regulations, businesses should pay for pollution so they can decide how best to run their businesses. (Cap and trade)

Why?

Too much regulation can make it impossible to do business. Without business there are no jobs. Without jobs there are no taxes. We need jobs to keep the economy going even if it is not totally environmentally friendly.

What would you do in this situation?

The copper company wants to open a new mine in Tucson about two miles from your home.

Your cousin started a business that is pretty successful but they are cutting back on spending due to the economy. The government wants to require that any business with over an acre of property must use at least 30% of their energy from green sources. This may be too expensive for your cousin to earn a profit.

To combat traffic pollution, there will be a $1 toll on I-10 during rush hour (7AM – 9AM and 4PM – 6PM)

Radical - Communist

Believe in CENTRAL PLANNING The government runs all aspects of the economy

Government decides what is produced in the factories Government decides how much things cost Government decides where the roads will be built Government decides what your career should be Government decides where you will live Everyone has a job (even if the job is digging a ditch and

filling it back in, you will be working)

Radical Pros and Cons

You never have to worry about being unemployed

You don’t have to think about what price to charge or what products to make

Digging and filling in ditches is not a productive use of your time

When the government sets prices and determines what products to make, consumers have no input on the goods and services they want

Problems with a planned economy

Often, in a centrally planned economy, there is little innovation because there is no incentive.

KEYNES – ECONOMIST

Recession…..what should the government do?

In order to keep the economy moving, the government should provide jobs. Employed people buy goods and services which will keep other people employed. It is okay in this situation for the government to take on more debt. (Think Stimulus package)

Hayek - economist

Hayek believed that the markets should prevail. Even during a recession, the government should not intervene. Making jobs promotes waste in the economy and will be paid for in taxes. Leave the money in the pockets of the people and let them decide where to spend it.

Frédéric Bastiat

Bastiat was a French philosopher in the 1700s. He believed it was better to give people money to make their own buying decisions rather than create jobs.

When a window is broken, the glass man gets paid to fix it. But who might have gotten your money if you didn’t have to pay for the window? Maybe you could have gone out to dinner or bought some new clothes for school.

If the government spends tax money on good things that is great. But if you paid lower taxes, maybe there is something else worthwhile that you could have spent your money on

Rest of the class

Review Ch. 5Read and take notes on Ch. 6 Voting

Vocabulary